American lingerie and apparel retailer Victoria's Secret has announced it will expand its collections on Amazon and broaden its product categories. While the company had previously launched its own Amazon storefront for beauty products, it now intends to expand its presence on the platform by featuring its own label and Pink brands. Customers can expect a range of new categories, including underwear and lingerie, sleepwear, swimwear, and loungewear.
During an earnings call last week, Martin Waters, the CEO of Victoria's Secret, highlighted the company's commitment to expanding its distribution channels, citing Amazon as a prime example. He stated, "We're continuing to expand our channels of distribution, for example, Amazon, to meet customers where they are."
This partnership with Amazon represents a milestone, marking the first time Victoria's Secret lingerie and apparel styles will be accessible through a retail partner in North America. Customers will benefit from free Prime delivery for the products, and select styles will be eligible for Amazon's Prime Try Before You Buy program, enabling them to try on items at home before making a purchase.
In a statement, Greg Unis, the chief growth officer at Victoria's Secret, said: "We are thrilled to be expanding our relationship with Amazon. Following the success of previous product launches, we have continued to expand our assortment offering with Amazon Fashion, and it remains a natural extension of our owned channels."
“One of our missions at Amazon Fashion is to create shopping experiences that connect customers with brands they love,” said Muge Erdirik Dogan, President of Amazon Fashion. “Adding a wide assortment of lingerie and apparel from Victoria’s Secret to our stores has been a seamless progression of our work together. We look forward to expanding our selection and inventing new ways for our customers to shop.”
While discussing the competitive landscape, Waters acknowledged the pressure faced by Victoria's Secret from industry players such as Amazon, Walmart, and Target, particularly in the underwear category, noting competitors sold these "at a commodity price," making it more challenging for Victoria's Secret to compete based on factors like newness, quality, and innovation. Waters mentioned that Victoria's Secret currently holds a 26 percent market share in the category.
Victoria's Secret recently reported its Q1 net sales of 1.4 billion dollars, representing a year-over-year decrease of 5.2 percent, with comparable sales down 11 percent, according to Retail Dive. The company attributed this decline, in part, to a higher level of promotional activity than initially planned in its North American stores. Waters emphasized that steps are being taken to address these challenges, including an upcoming relaunch of the Pink brand, with new merchandise set to debut before the end of June.